Chapter 5 Life Flashcards Preview

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Flashcards in Chapter 5 Life Deck (20):
1

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

2

Which of these factors do NOT play a role in the underwriting of a life insurance policy?

Avocations
Credit status
Marital status
Occupation

Marital Status

3

What is being delivered during a policy delivery?

Insurance contract to the proposed insured

4

The underwriting process involves all of these EXCEPT for
Credit report
Policy loan
Risk classification
Application

Policy loan

5

Which parts of a life insurance policy are guaranteed to be true?

Warranty

6

Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?

Geographical location
Source of income
Risk classification
Marital status

Risk Classification

7

Which of the following statements is CORRECT about an agent who is taking an insurance application?

-The agent should avoid asking the applicant questions that may cause embarrassment

-The agent should have the applicant initial any changes made on the application

-The agent may allow a member of the applicant's immediate family to sign the application if the applicant is not available

-The applicant may answer routine questions on the application for the applicant

The agent should have the applicant initial any changes made on the application

8

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as

a representation

9

On delivery of a policy, a signed statement of good health is typically requested if

The application was submitted without the initial premium

10

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

11

K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?

Conditional

12

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform insurer of relevant information not included on the application

13

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

Fair Credit Reporting Act

14

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

January 26

15

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

The date of policy delivery

16

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

17

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

Risk classification

18

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

19

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

20

Before a life insurance policy is issued, which of these components of the contract is required?

Applicant's signature on application